Czech CEO Survey 2016

This is the seventh time we have addressed the leaders of the most
important companies operating in the Czech market. The Czech
CEO Survey, to which we received responses from 110 Czech business
leaders, follows the Global CEO Survey that PwC has executed for 19
years. Its results are traditionally published at theWorld economic
forum in Davos in Switzerland.

The Czech CEO survey 2016 showed an extraordinary rate of optimism by
Czech business leaders as compared to their world CEO colleagues who
are far more pessimistic.

Czech CEOs are also less worried than their colleagues around the globe
about external geopolitical impacts.

The key topic of the CEOs agenda remains the issue of how to get suitable
employees to join their companies and how to keep them. It is the latest
digital, mobile and cloud technologies that are related to that topic but
they also influence the internal corporate culture of companies.

On the one hand, corporate cultures would have to adapt to the new
generation´s habits of using these technologies. On the other hand, the
new generation has a different approach to the work and life in a
dynamically changing world.

We believe that our survey will help you to orient better towards these
changes.

The highest
confidence rate

Czech economy ranked among the top
European states in 2015 with the GDP
growth of more than 4 %. Even though the
growth was influenced by receiving money
from EU funds, companies trust in the
economy is evident. This is proven by the
increasing number of investments, wage
increas or very low unemployment rate.

How confident are CEOs about their company’s revenue growth prospects over the next 12months/3 years?

The highest
confidence rate

Czech crown

“Companies should not forget that
possible euro acceptance does not cover
all their exchange rate risks.Many
materials are imported fromdollar
territories and also big investments are
exported to non-euro regions.”

Olga Cilečková, Treasure risk manager, PwC ČR

We save but we want
to grow

“Investors´ interests lie in traditional
industry sectors like engineering or
energetics but also in IT ormedia.
Acquisitions aremade by local
investors but there are a wide range of
foreign players, too. The interest of
Chinese investors to invest to Czech
companies and Central and Eastern
Europe is increasing. “

Miroslav Bratrych, managing Partner in Consulting,
PwC ČR

We will not have
employees…

According to CEOs the key topic in 2015
was the availability of employees with
required knowledge, experiences and
skills. In 2016, the year-on-year increase
in new vaccancies will not be that
significant but the reservoir of vacant
labour force will also decrease.

Technologies and
corporate culture

“In 1920,machineswere engaged in the
automatization of car production,whereas
in 2016, they can drive a car, diagnose a
patient or approve contracts. “

Petr Chadima, expert in technological consulting, PwC CZ

The state tightened
up

“The survey showed up that CEOs are
circumspected in their positions of
statutory deputies. They took necessary
measures to complet their knowledge of
law about these risks, often by
consultingwith their external lawyers.
More than a quarter of companies had
to re-expose their processes.“

Bořivoj Líbal, the managing Partner of PwC Legal CZ

How do CEOs keep
up

“Companies deal quite intensivelywith
the question of keeping employees and
gaining new ones fromdiverse age
groups,with different values, priorities
and expectations. However, they
should try to solve the problemof the
co-existence ofmore generations or
different specific groups of employees
in one workplace and a way tomanage
themeffectively.”

Andrea Linhartová Palánová, HR expert in PwC CZ

How to approach the
generation Y and Z
labour force?

“Generations Y and Z are important for
companies´ opportunities due to their
habit of using the internet, socialmedia
andmodern technologies in their
everyday life. If they get a chance, they
can help companies to focus their
investments into innovations or they can
help with an innovative way of
approaching customers.”

Andrea Linhartová Palánová, HR expert in PwC CZ

Competitiveness of the
Czech Republic

CEOs clearly stated clearly that they
expect a less complicated life from the
government due to administrative and
tax burden. This comprise innovation
opportunities which leaders of the Czech
companies see in a public administration
– functional processes and controlling
mechanism.

Foreign expansion

“In response to the progress of the domesticmarket, lots of
building companies are starting tomove their capacities
abroad.However, not every company catch as on in foreign
countries. Foreignmarkets are usually very protectionist and,
in addition, Czech companies can face a lot of troubles due to a
lack of awareness of the local environment that can lead to a
decrease in profitability.”

The Czech CEO Survey 2015 has clearly shown that CEOs
focus
on
growth. The common lamentation over the crisis is already past.
Each company is unique and search
e
s for its own way to success.
The common denominator is the acquisition and correct usage of
resources.
P
eople
are
the most important one. The fear that there
will not be enough employees with required knowledge will
represent
–
according to
the
CEOs
–
the biggest threat for their
companies. Historically, this threat replaced traditional themes
such as corruption, bureaucracy or high
tax
burden
,
for
the first
time. Therefore, we have devoted one single chapter to the
q
uestion
of employee’ motivation. I believe that it will be an
inspiration for you to succeed in the struggle for the best
employees.

The Czech CEO Survey 2014 showed that
thoughts on the crisis, which were very
common during the past five years, have been
replaced by a new challenge – achieving a new
reality. The new reality is as demanding as the
recent period. However, CEOs’ increasing
confidence indicates that, certain doubts
aside, they do believe in success. Entering new
industries could help them to achieve it.